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For companies in distress we offer an independent financial review with advice on various options available.
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How Compulsory Liquidation of a Company works.
Compulsory Liquidation is instigated by the Court, usually on the petition of a creditor, or a shareholder. There are grounds upon which the court can make a winding up order, the most usual being that the Company is insolvent.
Upon the making of the winding up order, the Official Receiver becomes Liquidator of the Company and has a duty to investigate the trading history of the Company and submit a report to the DTI.
If appropriate, the Official Receiver will seek to appoint an Insolvency Practitioner as Liquidator in his place, either at a meeting of creditors or by application to the Secretary of State. The Liquidator's duty is to realise the Company's assets and distribute the proceeds to creditors.
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